IRS Payment Plans
Those who’ve never used a short term loan to help them in a financial emergency may be a bit leery about this service. Payday loans are one form of quick-cash loan that can help you if you have a money emergency and you’re short on money. These loans are meant as a short-term solution, and if you have all the facts before you make the choice to go to a lender, you should be okay. Just don’t use one to pay your taxes when they come due as the IRS has a number of payment plans that won’t stress out your budget and incrementally trap you in a negative cycle.
How Payday Loans Work
Payday loans are very simple. You borrow against your next paycheck, and they charge a fee for the service. The fee can seem quite high, as it’s based on an annual percentage rate. However, since the term of most payday loans is one to two weeks, that fee breaks down accordingly. Each lender sets their own interest rate, so for an individual rate, you would have to contact a specific lender and inquire about the amount.
The process of applying usually involves three steps:
1. Filling out an application online.
2. Contacting the lender via phone to verify your information.
3. Choosing your method of payment.
Most payday loans are by direct deposit to your bank account. You can also apply directly by visiting a loan center in your neighborhood, but the online application offers a wider range of lenders to choose from, and you don’t even have to leave home.
Payday loans don’t involve credit checks. The only criteria for applying is to have a source of income they can verify, a checking account in your name, and a government-issued picture identification card. If you’re approved for the loan, they’ll send you a verification by email. If you apply for a loan in person, they can usually give you an answer within minutes.
Repayment of a payday loan is made by an automatic deduction from your checking account, you can also elect to pay in person with cash. Payday loans may be paid in advance without penalty, otherwise the repayment is automatically withdrawn from your account by the terms of the advance. If there’s a problem and you can’t pay the loan on time, you should contact the lender immediately.
If you need to apply for payday loan services to help you over a rough spot in your finances, make sure that you use a service that’s reputable. Look for a direct lender. That’s a loan company that directly finances the loan instead of working as an intermediary and collecting fees.